Nike vs. AdidasNike vs. AdidasTeamTeam

Robin CastilloRobin CastilloSirrea HayesSirrea HayesBeth NicholsBeth NicholsOfe WalkerOfe Walker

Mission StatementsMission StatementsNikeNike

To bring inspiration To bring inspiration and innovation to and innovation to every athlete* in every athlete* in the worldthe world

* If you have a * If you have a body, you are an body, you are an athleteathlete

AdidasAdidas

To be the leading To be the leading sports brand in the sports brand in the worldworld

*Impossible is *Impossible is NothingNothinghttp://www.youtube.com/watch?v=EPO20PkSztE

HistoryHistoryNikeNike

1964: 1964: Bowerman/KnightBowerman/Knight

1970: Waffle Iron1970: Waffle Iron

1972: Swoosh1972: Swoosh

1980’s: Sport 1980’s: Sport Celebrity Celebrity Endorsement & Endorsement & GrowthGrowth

AdidasAdidas

1920’s-30’s: 1920’s-30’s: DasslerDassler

1954: Soccer1954: Soccer

1960: 3-Stripe 1960: 3-Stripe

1984: Summer 1984: Summer Olympics & Olympics & Mainstream Mainstream popularitypopularity

Key LeadersKey LeadersNikeNike

Chairman of the Chairman of the Board: Phil KnightBoard: Phil Knight

CEO Nike: Mark ParkerCEO Nike: Mark Parker

CFO: Don BlairCFO: Don Blair

President Nike Brand: President Nike Brand: Charlie DensonCharlie Denson

Global Operations: Global Operations: Gary M. DeStefanoGary M. DeStefano

AdidasAdidas

CEO Adidas-group: CEO Adidas-group: Herbert Hainer Herbert Hainer

Finance Adidas-group: Finance Adidas-group: Robin J. Stalker Robin J. Stalker

CEO Adidas brand: CEO Adidas brand: Erich Stamminger Erich Stamminger

Global Operations Global Operations Adidas-group: Glenn Adidas-group: Glenn S. BennettS. Bennett

Industry / ProductsIndustry / ProductsNikeNike

Athletic ShoesAthletic Shoes

ApparelApparel

Sports EquipmentSports Equipment

AccessoriesAccessories

AdidasAdidas

FootwearFootwear

SportswearSportswear

Sports EquipmentSports Equipment

Business StructureBusiness StructureNikeNike

NIKENIKE

Five SubsidiariesFive Subsidiaries– Cole HaanCole Haan– ConverseConverse– Hurley InternationalHurley International– NIKE GolfNIKE Golf– Umbro Umbro

AdidasAdidas

Adidas Adidas

Two SubsidiariesTwo Subsidiaries– ReebokReebok– TaylorMade TaylorMade

Market SegmentsMarket SegmentsNikeNike

RunningRunning– Footwear Footwear – ClothingClothing

GolfGolf– FootwearFootwear– ClothingClothing

SoccerSoccer– FootwearFootwear– ClothingClothing

AdidasAdidas

Sport PerformanceSport Performance– FootwearFootwear

Sport StyleSport Style– ClothingClothing

Competitive StrategyCompetitive StrategyNikeNike

Premium Price Premium Price StrategyStrategy

Sponsorship Sponsorship AgreementsAgreements

No ManufacturingNo Manufacturing

AdidasAdidas

Premium Price Premium Price StrategyStrategy

Sponsorship Sponsorship AgreementAgreement

Core CompetenciesCore CompetenciesNikeNike

OutsourcingOutsourcingAdidasAdidas

Implementation of Implementation of Joint Operating Joint Operating Model in EuropeModel in Europe

Distinctive CompetenciesDistinctive CompetenciesNikeNike AdidasAdidas

Competitive AdvantagesCompetitive AdvantagesNikeNike AdidasAdidas

Industry Trends / Key IssuesIndustry Trends / Key IssuesNike / AdidasNike / Adidas

Sales are FlatSales are Flat

Low Consumer Confidence in the EconomyLow Consumer Confidence in the Economy

Global IssuesGlobal IssuesNikeNike

2008: Trade Deficit 2008: Trade Deficit with Chinawith China

AdidasAdidas

2008: Global 2008: Global Sports PartnershipsSports Partnerships

2009: International 2009: International Day of PeaceDay of Peace

2009: DJSI Winner2009: DJSI Winner

International Ethical IssuesInternational Ethical IssuesNike / AdidasNike / Adidas

China: Child LaborChina: Child Labor

Sales StrategySales StrategyNikeNike

Nike.comNike.com

United States: United States: 25,000 Retailers25,000 Retailers

International: International: Distributors, Distributors, Licensees, and Licensees, and SubsidiariesSubsidiaries

AdidasAdidas

Key CustomersKey CustomersNikeNike AdidasAdidas

Key CompetitorsKey CompetitorsNikeNike

AdidasAdidas

New Balance New Balance Athletic Shoe, IncAthletic Shoe, Inc

PUMA AG Rudolf PUMA AG Rudolf Dassler SportDassler Sport

AdidasAdidas

NikeNike

Amer Sports CorpAmer Sports Corp

Callaway Golf Callaway Golf CompanyCompany

SWOT- StrengthsSWOT- StrengthsNikeNike

Swoosh LogoSwoosh Logo

Innovative Innovative Technology FocusTechnology Focus

LIVESTRONG LIVESTRONG CampaignCampaign

NiketownNiketown

Conservative Conservative FinancesFinances

AdidasAdidas

3-Stripe Logo3-Stripe Logo

Purchased Reebok Purchased Reebok to gain presence in to gain presence in North AmericaNorth America

Leader in Corporate Leader in Corporate Responsibility & Responsibility & SustainabilitySustainability

Buyer LoyaltyBuyer Loyalty

SWOT- WeaknessesSWOT- WeaknessesNikeNike

Male Dominate Male Dominate Executive BoardExecutive Board

Labor CostsLabor Costs

AdidasAdidas

Male Dominate Male Dominate Executive BoardExecutive Board

SWOT- OpportunitiesSWOT- OpportunitiesNikeNike

Growth in Men’s Growth in Men’s FootwearFootwear

Recent Growth in Recent Growth in US Market ShareUS Market Share

AdidasAdidas

Grow Reebok menGrow Reebok men

Continue Partnership Continue Partnership DevelopmentDevelopment

SWOT- ThreatsSWOT- ThreatsNikeNike

Under ArmourUnder Armour

Economy Economy

AdidasAdidas

EconomyEconomy

US Market share US Market share shrank 2009shrank 2009

Porter’s – Product SubstitutionPorter’s – Product SubstitutionNikeNike AdidasAdidas

Porter’s – RivalryPorter’s – RivalryNikeNike AdidasAdidas

Porter’s – Buyer PowerPorter’s – Buyer PowerNikeNike AdidasAdidas

Porter’s – Supplier PowerPorter’s – Supplier PowerIntense competition among suppliers Intense competition among suppliers keeps manufacturing costs low keeps manufacturing costs low

Porter’s – Threat of EntryPorter’s – Threat of EntryNike / AdidasNike / Adidas

Under ArmourUnder Armour

Financial AnalysisFinancial AnalysisNikeNike AdidasAdidas

Ratio: 2Ratio: 2NikeNike AdidasAdidas

Ratio: 3Ratio: 3NikeNike AdidasAdidas

Ratio 4Ratio 4NikeNike AdidasAdidas

AcquisitionsAcquisitionsNikeNike

1995: Bauer1995: Bauer

2002: Hurley 2002: Hurley InternationalInternational

2003: Converse2003: Converse

2004: Starter 2004: Starter BrandsBrands

2008: Umbro2008: Umbro

AdidasAdidas

2005: Reebok2005: Reebok

DivestituresDivestituresNikeNike

2007: Starter to 2007: Starter to Iconix Brand GroupIconix Brand Group

2008: Bauer 2008: Bauer Hockey to Kohlberg Hockey to Kohlberg & Co& Co

AdidasAdidas

Current EventsCurrent EventsNikeNike AdidasAdidas

2009: Cirque de 2009: Cirque de SoleilSoleil

2012: London 2012: London Olympic and Olympic and Paralympics Paralympics PartnershipPartnership

SustainabilitySustainabilityNikeNike AdidasAdidas

Strategic Direction / ChangesStrategic Direction / ChangesNikeNike

2007: LIVESTRONG 2007: LIVESTRONG ChallengeChallengehttp://

www.youtube.com/watch?v=RDfCTJQTpXs

2009: Profitable 2009: Profitable Stock Split 2 for 1Stock Split 2 for 1

AdidasAdidas2008: Beijing 2008: Beijing Olympic PartnershipOlympic Partnership2009: Business 2009: Business RealignmentRealignment2009: Sold $15.7 2009: Sold $15.7 million shares of million shares of stockstock2009: Cirque du 2009: Cirque du Soleil PartnershipSoleil Partnership

RecommendationsRecommendationsNikeNike AdidasAdidas

MMNikeNike AdidasAdidas

BibliographyBibliographyAdidas – Impossible is Nothing. (2006, May 10). Adidas – Impossible is Nothing. (2006, May 10).

YouTube video posted by sktube. Retrieved YouTube video posted by sktube. Retrieved November 27, 2009 from November 27, 2009 from http://www.youtube.com/watch?v=EPO20PkSztE

Fredeen, B. (2000, Feb. 1). Knowing Nike’s Fredeen, B. (2000, Feb. 1). Knowing Nike’s Customers. Retrieved November 18, 2009, from Customers. Retrieved November 18, 2009, from Fool.com.Fool.com.

Footwear Industry in USA. (2008). Retrieved Footwear Industry in USA. (2008). Retrieved November 22, 2009, from http://www.infomat.comNovember 22, 2009, from http://www.infomat.com

BibliographyBibliographyHoover’s Inc. (2009). Company Discriptions. Hoover’s Inc. (2009). Company Discriptions.

Retrieved November 22, 2009 from Retrieved November 22, 2009 from http://www.hoovers.comhttp://www.hoovers.com

LIVESTRONG Challenge 2007 Video. (2007, June 1). LIVESTRONG Challenge 2007 Video. (2007, June 1). YouTube video posted by livestrongarmy. YouTube video posted by livestrongarmy. Retrieved November 27, 2009, from Retrieved November 27, 2009, from http://www.youtube.com/watch?v=RDfCTJQTpXshttp://www.youtube.com/watch?v=RDfCTJQTpXs

Mehta, S. (2009, March 5). Fortune. Under Armour Mehta, S. (2009, March 5). Fortune. Under Armour reboots. Retrieved November 28, 2009, fromreboots. Retrieved November 28, 2009, from

http://www.money.cnn.com/2009/01/20/http://www.money.cnn.com/2009/01/20/technology/mehta_underarmour.fortune/technology/mehta_underarmour.fortune/index.htm?postversion=2009012613index.htm?postversion=2009012613

BibliographyBibliography40 under 40. (2009, October 22) 40 under 40. (2009, October 22) FortuneFortune, Retrieved , Retrieved

November 28, 2009, from November 28, 2009, from http://money.cnn.com/galleries/2009/fortune/0901http://money.cnn.com/galleries/2009/fortune/0901.40_under_40.fortune/index.html.40_under_40.fortune/index.html

Pienciak, M. (2009, September 2009). The Motley Fool. Nike’s still got no bounce. Retrieved November 28, 2009, from http://www.fool.com/investing/general/2009/09/30/nikes-still-got-no-bounce.aspx?source=isesitlnk0000001@mtt=1.00

BibliographyBibliographyConerly, B. (2008, February 5). Seeking Alpha

website. Nike strategy: divide and conquer. Retrieved October 19, 2009, from http://seekingalpha.com/article/63099-nike-strategy-divide-and-conquer

Burke, M. (2008, January 17). Forbes Magazine. On the run. Retrieved October 19, 2009, from http://www.forbes.com/forbes/2008/0211/082.html